If you work at Deutsche Bank, you may want to raid the supply closet and store up on as many staples and pens as you can. The German lender’s latest cost-cutting measure signals the bank is willing to slash just about anything to save a few dollars.
Earlier this month, Deutsche Bank circulated a memo noting that free fresh fruit will no longer be provided to employees, according to the FT. Bankers will now need to dip into their own wallet to stave off scurvy, it appears. Interestingly, the memo wasn’t a generic email from HR but rather a directive from Joerg Salzer, Deutsche's head of corporate services.
Salzer acknowledged that the move was “small” but was meant to “send a signal” that the bank isn’t messing around with its cost-cutting measures. What’s more, Salzer said that those who have ordered or received fresh fruit over the last few months would be receiving a personal email in the coming weeks. Clearly, any money-saving option – big or small – is on the table.
The news follows a recent report that Deutsche Bank is shortening its garden leave policy from the industry-standard 90 days for most bankers down to 60 or even 30 days for some of its staff, meaning the firm will save a month or two of salary when senior bankers exit. Deutsche Bank is set to trim as much as 20% of its U.S. investment bank under new CEO Christian Sewing.
Elsewhere, the New York Times has reportedly confirmed what has been suggested for months: Goldman Sachs president David Solomon will replace current CEO Lloyd Blankfein when he retires at the end of the year. The real news buried in the report involves the short list of contenders to replace Solomon as president. They include John Waldron, co-head of investment banking, Eric Lane, co-head of investment management, and Stephen Scherr, head of Goldman’s consumer banking division.
Conspicuously missing from the list is anyone with ties to Goldman’s securities business. Solomon himself has a background in M&A and the bank just said goodbye to two of the three trading heads – veterans with strong ties to Blankfein. A culture change is coming to Goldman Sachs and traders may not have a seat at the big table.
Credit Suisse is adding headcount within its debt swaps market-making team as it seeks to make a bigger push into the burgeoning market. (Bloomberg)
The head of Deutsche Bank’s supervisory board, famed European banker Paul Achleitner, is starting to take on much of blame for the firm’s perilous position. One of the items on the docket at the company’s annual meeting will be a vote to oust Achleitner. (NY Times)
At least three big banks plan to spend well over $100 million in fees, salaries and technology investments to reorganize their businesses following Brexit. (FT)
Famed private bank Coutts is conducting another investigation into sexist behavior after an employee was photographed wearing a hat adorned with a penis-shaped protrusion at a company-sponsored charity event. (WSJ)
While there is no longer a gender disparity when it comes to STEM majors (science, technology, engineering and mathematics), less than one-third of economics students are women. (Prospect Magazine)
‘Why I Left Goldman Sachs and Wall Street Glory for Crypto – and Why I'd Do It Again’ (Entrepreneur)
The trading of derivatives including credit default swaps is “unacceptable” and a “ticking time bomb.” No, Warren Buffett didn’t say that. It was the Pope. (Bloomberg)
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